Economic Development Futures Journal

Monday, February 02, 2004

counter statistics

Religion, an Economic Growth Engine

What really stimulates economic growth is whether you believe in an afterlife ? especially hell. At least that's what two Harvard scholars have found after analyzing data collected in 59 countries between 1981 and 1999.

"Our central perspective is that religion affects economic outcomes mainly by fostering religious beliefs that influence individual traits such as honesty, work ethic, thrift and openness to strangers," the researchers, Robert J. Barro and Rachel M. McCleary, wrote in a recent issue of American Sociological Review. (They also happen to be married.) "For example, beliefs in heaven and hell might affect those traits by creating perceived rewards and punishments that relate to 'good' and 'bad' lifetime behavior."

The data comes from six international surveys, including ones by Gallup, the World Bank and researchers at the University of Michigan. They include questions about attendance in places of worship and religious beliefs. There were four measures of economic development: per capita gross domestic product, educational attainment by adults, the urbanization rate and life expectancy

Oddly enough, the research also showed that at a certain point, increases in church, mosque and synagogue attendance tended to depress economic growth. Mr. Barro, a renowned economist, and Ms. McCleary, a lecturer in Harvard's government department, theorized that larger attendance figures could mean that religious institutions were using up a disproportionate share of resources.

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